RSI decreases but price still increases – a bearish divergence signal

1. RSI is a momentum indicator, not a price indicator

RSI measures the momentum of the trend, not the absolute value.

When RSI decreases, it means that the upward momentum is weakening, even though the price is still increasing.

2. Price can continue to rise due to cash flow or FOMO, but is 'running out of steam'

At this point, the market may be in the final stages of a rally.

Investors jump in late (FOMO), pushing the price higher even though buying pressure is no longer strong.

RSI reflects this before the price actually reverses.

3. Bearish divergence – a warning sign of reversal

When the price makes higher highs, but RSI makes lower highs → this is called bearish divergence.

This is a signal that the market is about to correct or reverse downward.

📌 Real example from your chart:

BTC still makes higher highs (~97k), but RSI has gradually decreased from the 70 area → 56 → a sign of divergence.